I'll give you an example from my own situation. I run a metal stamping plant. My largest vendor is a plater, I make the parts they coat them. They employ low skilled (mostly temps) workers to hang my parts on a rack. Now they have a few long term people that are good at the job and they can make up to $10/hr. The majority are temps making min wage and for the most part aren't worth that. Now this company stands to see their labor costs go up dramatically, at which time I will undoubtedly see a price increase. Things being as they are I cannot eat those increased costs, I'm already cut to the bone. I will approach my customers with a price increase at which time they will laugh hysterically. The bottom line is I WILL lose work, not maybe, I WILL lose work, period. And so will the plater. So at the end of the day this will not only cost some of those min wage workers their job but will in all likelihood cost some one in my shop theirs. My lowest paid employee makes $14/hr.
What drives me crazier than anything else is that at the end of the day, those that support this increase will point to Mcds and say "see, everything worked out fine". Neither my employees nor the platers will ever even be acknowledged. I've been through this before and it doesn't end well.